Will Jacobs

How AI Product Recommendations Can Benefit Your Online Store

by | Nov 30, 2022 | 0 comments

How AI Product Recommendations Can Benefit Your Online Store

If you’re an ecommerce manager, then you know the importance of product recommendations. After all, product recommendations are one of the easiest ways to increase sales and boost customer satisfaction. And while there are many different ways to push your product catalogue, artificial intelligence (AI) product recommendations are quickly becoming the preferred method for many businesses. 

There are many benefits of using AI product recommendations. From increasing conversion rates and sales to boosting customer engagement, AI product recommenders can help your business in a variety of ways. Read this blog to learn the benefits of using AI Product Recommendations on your online store.

 

Firstly, what are AI Product Recommendations?

Simply put, A.I. Product Recommendation engines are AI-based recommendation engines such as data-filtering tools that make use of various algorithms and data to recommend the most relevant products to a particular customer. 

AI product recommendations work by analyzing customer behavior and making predictions about what products they might be interested in. This information is then used to generate personalized recommendations that are displayed to the customer when they visit your site.

One of the advantages of using AI for product recommendations is that it can take into account a wide range of data points, including things like search history, past purchases, and even items that have been added to the shopping cart but not purchased. This allows for a much more comprehensive understanding of the customer’s needs and wants, which leads to more accurate recommendations.

It is influenced by search data and merchandising to ensure the shopper sees the products they are looking for. Think of it like a virtual shopping assistant. 

Today’s site search engines use natural language processing (or NLP) to analyse the search, discern intent, and retrieve the results it thinks the shopper wants. They are much more sophisticated than they used to be and are more focused on honing in on results with greater focus and more precise targeting. NLP is key to that.

 

AI Product Recommendations Are Personalized

One of the biggest benefits of AI product recommendations is that they are highly personalized. Thanks to machine learning, AI-powered product recommendation engines can learn about a customer’s individual preferences and characteristics over time. This means that the recommendations they receive will be more relevant and helpful and connect them with the products they’re looking for. 

This is important because when customers receive personalized recommendations, they’re more likely to make a purchase. In fact, studies have shown that personalized recommendations can increase conversion rates by up to 18%. If you’re not using AI product recommenders, now is the time to start. Be sure to check out Findologic’s own AI shopping assistant, LiSA here to see how you can deliver a better customer experience.

 

AI Product Recommendations Boost Sales and Engagement

If you’re looking for a way to give your ecommerce sales a boost, you may want to consider using AI product recommendations. By leveraging the power of artificial intelligence, you can provide your customers with tailored recommendations that are more likely to result in a purchase. 

When customers see relevant and helpful recommendations, they’re more likely to purchase those products. And when they’re more engaged with your shopping experience brand, they’re less likely to churn.  

What are the Benefits of AI Product Recommendations

There are several benefits that come from using AI product recommendations, including:

Increased Sales: Perhaps the most obvious benefit of using AI product recommendations is that they can lead to an increase in sales. By providing customers with tailored recommendations, you’re more likely to find items that they’re interested in, which leads to more sales. Additionally, customers who have had a positive experience with your recommendation system are more likely to come back and make additional purchases in the future.

Improved Customer Retention: In addition to increasing sales, AI product recommendations can also lead to improved customer retention. If customers have a positive experience with your site and feel like they’re able to find the products they’re looking for, they’re more likely to continue doing business with you. Furthermore, happy customers are more likely to tell their friends and family about your site, which can lead to even more business.

Greater insights into customer behavior: One of the side benefits of using AI for product recommendations is that it can provide you with greater insights into customer behavior. By analyzing data points like search history and past purchases, you can better understand what customers are looking for and tailor your marketing strategy accordingly. Additionally, if you see that certain items are being recommended frequently but not purchased, it may be indicative of a problem with those products or your overall site design. Either way, it’s valuable information that can be used to improve your business. 

 

Final thoughts

AI product recommendations can offer a number of benefits for ecommerce businesses, including increased sales and improved customer retention. If you’re looking for a way to give your online store a boost, consider leveraging the power of artificial intelligence.

Of course there’s so much more to this subject, and if you’d like to understand more, why not get in touch?

 

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